MARYLAND

“Maryland ABLE Program” is the name of Maryland’s ABLE program

 Helpful Information About Maryland’s ABLE Program:

 

Program Name
Maryland ABLE Program

State Administrator
Maryland 529

Program Administrator
Vestwell State Savings, LLC, dba Sumday Administration

State Tax Incentives

State Income Tax Deductions: $2,500 of contributions per contributor and $5,000 for joint filers, per ABLE account are deductible in computing Maryland taxable income for Maryland state income tax payers (with a 10 year carry forward of excess contributions)

Medicaid Estate Recovery

Effective October 1, 2018 Maryland passed state legislation stating that unless required by federal law, an agency or instrumentality of the state may not seek payment under § 529a(f) of the internal revenue code from an able account or its proceeds for any amount of medical assistance paid for the designated beneficiary. It further states that unless prohibited by federal law, on the death of a designated beneficiary, money and assets in an able account may be transferred to:

(1) The estate of the designated beneficiary; or

(2) An able account for another eligible individual specified by the designated beneficiary or the estate of the designated beneficiary.